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Sun 16 Oct 2016 03:10 PM

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Saudi finance ministry to close annual accounts early in austerity step

Early book-closing makes it easier for ministry to reject new funding requests

Saudi finance ministry to close annual accounts early in austerity step
Saudi Arabias Finance Minister Ibrahim al-Assaf. (AFP/Getty Images)

Saudi Arabia's finance ministry will close its accounts for this year's budget on November 15, the ministry said on Sunday in a fresh sign that it is clamping down on spending as low oil prices slash state revenues.

Traditionally, the ministry has closed its books in mid-December each year, but last year it brought this date forward to mid-November. Sunday's statement said it would follow a similar approach for 2016.

The early book-closing makes it easier for the ministry to reject new requests for funds and prevent other government agencies from wasting unspent funds on purchases of non-essentials in the final weeks of the year.

The government posted a record budget deficit of $98 billion last year, a massive 15 percent of gross domestic product, and has projected the gap will shrink to $87 billion this year through spending cuts and higher non-oil revenues.